Short Seller's Bet Sends Olam Shares Plunging

11/20/2012 4:54AM

Investors lost confidence in commodities trader Olam International after the founder of short seller Muddy Waters said he is betting against the company. The WSJ's Jake Lee discusses concerns about the company.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... shares of the ... lodges commodities traders on ... edge found a love interest in Asian trade following comments made by the founder and research firm ... Muddy Waters that he's betting against the company ... I'm Deborah con you watching Asia Today joining me now is Asia Markets Editor Jake Lee ok Jake ... story that everyone's talking about right now what exactly ending Carson Block what exactly did he say about a lot save money voted to back its famous show Senate that has this of the capacity to Sanchez lowering down with images to show common ... this is we did just yesterday and an of conference he said this new tenants and actually Singapore and what he's paid at ... the site to something he just didn't like about the company ... he said is heavily infected and was the question to accounting to him at valuations and that ... I think are sick money was to stop and that's it just hit the sell button ... on the data loss courses late that ... we've been trying to figure out what's going on State Bank in a statement saying it backs up that way saying ... that women we've just seen trading resumed even still very nervous and stock still and now I should point out that this report haven't even come out these are based on comments he made on the sidelines as some conference that he was attending in London ... on what is the company saying about all that well cause that defending and and again very strongly that saying that he did everything from Masafumi with statements ... that saying no this is true ... and they can defend it ... the thing is ... this ... is a small is a very complete it money was isn't as if he's shipping often very complicated business structures ... and it's hard to see that the applicant to refit that would feature to ... save ... the company to keep defending and we haven't seen the report ... to some rumors saying it could be up sometime state but we just don't know ... of but haven't been out to get ahold of what it was just to find out more information to British Airways on tenterhooks ... and of course when Borders has a very mixed record sometimes unit he said ... look what a ... unit of the money on ahead ... the semi has become these into bankruptcy other times comes to bounce back saying Vestas reach our estimate ... another is to try again today ... this is of course the company that kind of ... blew the whistle on Sunday and accounting practices within Chinese companies listing in the US and ... giving him a lot of notoriety in the market for for those out reports ... but what's the history of the law many names in agribusiness company that really started in Africa and giddiness rhinestones in Nigeria eminence is a really colorful come ... up with that that ... of an Ashes revenue means is ... that last Wednesday's trade as an app to take on the read the CBO's new ball ... and we'll all ... this is a company that trades Union haven't had coffee should Don Knotts ... at most recently allegations in the uniformity waters even get down to ... the weight booking these these one-time gains I'd say it's a course of the automotive who she is ... a mischief but this time I think but on the board should continue straight yet so Draco for a company with this in a very interesting history ... and people now just try to correct what has happened here with the camping how does that much help with the US ... then as it did cross that that the continent as USA today from Africa to Indiana listing in thing well is dead believe in two thousand and five two thousand and five writes ... but even before this report is how bad it down sums of twelve percent ... she will or the other of its CompX isn't done padding its here ... I'm just looking Will masa Benson least thirty six percent ... stake in a row for a rough time some these are called to a trader's ... I now have seen ... some questions about the people before as well CLSA backing every ... day he she can report that unique resting some some them that this can be as Easy began the company to spend the day ... but in an hour she money was decisions read them they call national service to the wall ... behind ... that from them for awhile ...